V-LINE becomes international strategic partner in SABIC’s NUSANED initiative
Stimulate the local industry by supporting local manufacturing, expanding exports and creating job opportunities: These are the overall goals of the NUSANED initiative – and V-LINE and SABIC have formed a strategic partnership as part of it. The global leader in MRO (Maintenance, Repair and Operations) supply and one of the world’s largest petrochemical manufacturers are joining forces to enable and support a broad range of opportunities for Saudi local industry, thus contributing to Vision 2030.
On September 18, 2019, the joint memorandum of understanding was signed in Riyadh at a signing ceremony at SABIC headquarters. Fourteen other companies, international and Saudi, also took part in dedicating themselves to NUSANED. The program, launched by SABIC at the beginning of 2018, now includes a total of twenty-two companies and addresses topics like creating job opportunities for Saudi nationals, increasing non-oil exports and empowering Kingdom companies collectively to be more competitive in the market. NUSANED created projects will have a value of SAR 4.3 billion and facilitate generation of nearly 1700 new jobs.
In this context, V-LINE will be the international strategic partner for local manufacturing, holding the role as prequalification authority for NUSANED based on its 40 years of business experience in Saudi Arabia. Furthermore, V-LINE will identify local demand and the possibility for scaling manufacturing beyond KSA. Thus, V-LINE will support small and medium size Saudi companies to increase exports. Also, in a joint team of V-LINE and SABIC representatives possible future synergies will be discussed, binding V-LINE and SABIC in a promising strategic partnership.
In fact, this partnership is the icing on the cake of many years of successful cooperation. Since the founding of SABIC, V-LINE has been an important supply partner. First it was every plant individually, as all SABIC affiliates were run by joint venture partners. As SABIC grew, V-LINE was always on-site, also developing models on how to best support the changes, importantly when the Shared Services Organization was formed taking all affiliates’ procurement under its auspices.
After having changed business model from trader to procurement service provider, V-LINE was awarded SABIC Supplier Awards three times between 2003 and 2006. V-LINE’s overall goal was always to create the maximum local value possible in the field of MRO supply – which evidenced itself when V-LINE established local presence and received a full Saudi local trading license. “The constant partnership with SABIC was always alongside us and accompanied our business as a stable factor. This year, we were really proud to receive the SABIC Supplier Award again”, stated Detlef Daues, CEO of V-LINE EUROPE. “We are already planning the next joint projects, taking the industry to a new digitalized level.” Shahzad Haider, CEO of V-LINE MIDDLE EAST, concluded: “The NUSANED initiative and Vision 2030 are our catalysts to constantly adapt our business models to the new settings of digitalization, but never lose focus on our joint goals. We are very proud to be the international strategic partner of SABIC and are even now in the midst of the development and creation of new projects that will line-up in the long successful collaboration we have begun.”
Discussions in Saudi Arabia are also currently being held between V-LINE and PetroRabigh, where it is thought to establish a supply relationship on the basis of Vested Outsourcing.
The picture shows the official signing of the MOU: Fuad M. Mosa, VP of NUSANED and local content SABIC (left), signing next to Detlef Daues, CEO of V-LINE GROUP.
